Russia To Propose Rolling Back 1.8 Million Bpd Of Oil Cuts

Russia plans to propose to the OPEC/NOPEC allies next week that they reverse the group’s production to the October 2016 levels—the baseline for the cuts of most pact participants when they had pumped as much oil as they could to blunt the cuts’ impact later. Moscow will propose that OPEC and its Russia-led non-OPEC partners in the deal increase their combined production by 1.8 million bpd, starting as early as in July, Bloomberg reports , citing a person familiar with the Russian thinking. Yet, even with the 1.8 million-bpd production rollback, the total OPEC/non-OPEC level would still be around 1 million bpd below the October 2016 levels, because some producers, notably Saudi Arabia, have cut more than intended, while others, most notably Venezuela, have seen involuntary production declines and are unable to lift production, the person told Bloomberg. Russia thinks that its proposed production level would result in stable […]